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Microsoft Spots Ransomware Groups Abusing Zero-Day Flaw

The flaw affects VMware's ESXi hypervisor product, enabling high-profile ransomware gangs to steal data from virtual machines and encrypt them.

 & Michael Kan Principal Reporter

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Several high-profile ransomware gangs have been abusing a previously unknown software flaw to easily hijack IT systems, according to Microsoft. 

The zero-day vulnerability, dubbed CVE-2024-37085, affects VMware’s ESXi hypervisor product, which can let a user run virtual machines on a physical server. The use case is especially helpful for companies, enabling them to operate several virtual servers or a single machine. 

However, Microsoft is indicating ransomware groups are abusing a zero-day flaw in ESXi, possibly for months now, to infiltrate and steal data from companies. The groups abusing the flaw include members affiliated with the BlackBasta, Medusa, and Akira ransomware strains, along with Scattered Spider

The so-called "authentication bypass" vulnerability works when an attacker creates a group called “ESX Admins,” and adds their own users to it. Doing so lets an attacker gain full administrative privileges over the ESXi hypervisor, paving the way for the ransomware group to encrypt the virtual machines, steal data from them, or move to other areas of the victim’s IT network. 

Microsoft uncovered the flaw when investigating a BlackBasta ransomware attack on a North American engineering firm. The attackers first gained access to the company’s network through a Qakbot malware infection, which had spread to a computer. 

(Credit: Microsoft)

The ransomware group then stole the login credentials of two domain administrators in the engineering firm’s network before exploiting the ESXi hypervisor flaw to gain full admin privileges over the system. With full access, the attackers then installed the BlackBasta ransomware on the virtual machines and other additional devices. 

In response to the threat, VMware’s parent Broadcom has released a patch. However, Broadcom has rated the vulnerability as a “moderate" severity, which has received some criticism from security researchers since ransomware groups are actively exploiting it.

In the meantime, Microsoft is urging affected companies to install the Broadcom patch and check if their ESXi hypervisors contain evidence of the “ESX Admins” group—a sign that hackers already exploited the flaw within their system. 

One mystery is how the ransomware groups discovered the vulnerability. Microsoft suggests the culprits may have paid for details about the zero-day exploit from other hackers, citing one such sale of an ESXi exploit that went for $1.5 million. 

Microsoft adds: “Over the last year, we have seen ransomware actors targeting ESXi hypervisors to facilitate mass encryption impact in few clicks, demonstrating that ransomware operators are constantly innovating their attack techniques to increase impact on the organizations they target.”

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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